GUIDELINES FOR LEGAL ASSISTANCE

AND INDEMNIFICATION OF BIDS AND

AWARDS COMMITTEE (BAC) MEMBERS
AND ITS SUPPORT STAFF
APPENDIX 18
1.0 SCOPE
These guidelines shall govern the indemnification package for
public officials providing services in and for the Bids and Awards
Committee (BAC) pursuant to and in accordance with Section 73
of Republic Act No. 9184 (R.A. 9184), otherwise known as
“Government Procurement Reform Act” and its Implementing
Rules and Regulations (IRR)126.
These guidelines shall apply to all branches, agencies,
departments, bureaus, offices and instrumentalities of the
Government, including Government-Owned and/or
Controlled Corporations (GOCCs), Government Financial
Institutions (GFIs), State Universities and Colleges (SUCs), and
Local Government Units (LGUs).
2.0 PURPOSE
These guidelines are formulated to meet the following objectives:
2.1. To prescribe the rules and procedures in granting legal
assistance and indemnification to the Bids and Awards Committee
(BAC) members and BAC Support Staff.
2.2. To ensure that the mandate to insulate government
procurement personnel from the unnecessary loss, damage or
injury arising from the lawful exercise of their functions is
implemented in accordance with the provisions of R.A. 9184.
2.3. To establish the legal parameters for the effective
implementation of the legal assistance and indemnification
provided for BAC members and BAC Support Staff.
3.0 DEFINITION OF TERMS
BAC. Refers to the Bids and Awards Committee as defined and
established in accordance with Rule V of the Implementing Rules
and Regulations (IRR)127 of RA 9184.
BAC members. Refer to the regular and provisional members of the
BAC determined accordance with Rule V of the IRR.128
Indemnification. Refers to the assistance or remuneration given to
the members of the BAC and/or the BAC Support Staff for any
loss, damage, or injury caused to them by reason of the lawful
performance of their duty.
Private Legal Assistance. Refers to the services of a private lawyer
or external counsel engaged by or in behalf of the members of the
BAC and/or the BAC Support Staff resulting from the filing against
him of any criminal or civil action or proceeding for acts made in
connection with the lawful performance of his functions.
3.0 DEFINITION OF TERMS
Liability insurance. Refers to the insurance policy purchased and
maintained by the procuring entity in favor of a member of the BAC
and/or the BAC Support Staff against any liability asserted against or
incurred by the person in any such capacity or arising out of the person’s
status as such.
Medical Assistance. The remuneration given by the procuring entity for
any injury or disability incurred by members of the BAC and/or the BAC
Support Staff in the lawful performance of their official functions and
duties. For this purpose, “injury” means any bodily impairment arising
from and in the course of procurement-related activities.
BAC Support Staff. Refers to the members of the BAC Secretariat and
the Technical Working Group duly designated by the procuring entity
pursuant to the provisions of Rule V of the IRR129 of RA 9184.
GENERAL CONDITIONS
4.1. Free Legal Assistance
1. The procuring entity shall, to the fullest extent permitted by these
guidelines, indemnify a BAC member and/or any of the BAC Support Staff
who was or is a party to a pending or completed action, suit or proceeding
whether civil, criminal or administrative in nature brought against him in the
performance of his official functions as BAC member or as BAC Support
Staff.
2. The BAC member or BAC Support Staff concerned must have engaged
the services of a private lawyer or external counsel.
3. The BAC member or BAC Support Staff must have not been adjudged as
guilty of gross negligence, misconduct, or grave abuse of discretion.
4. The free legal assistance shall cover actual cost of suit and attorney’s
fees. The attorney representing the BAC member or BAC Support Staff shall
be entitled to a maximum of Five Thousand Pesos (₱ 5,000.00) per
appearance which shall be paid by the procuring entity.
4.1. Free Legal Assistance
5. The free legal assistance shall not cover:
a) any action or suit initiated by a BAC member or BAC
Support Staff in his personal capacity or in behalf of the
procuring entity, unless such action, proceeding, or claim was
authorized by the head of the procuring entity or the approving
authority therein; or
b) any action or suit initiated by the Government against the
BAC member or BAC Support Staff.
6. The BAC member or BAC Support Staff shall be entitled to actual,
moral, and exemplary damages when awarded by the court. Likewise,
the attorney representing the BAC member or BAC Support Staff shall be
entitled to attorney’s fees awarded by the court.
4.2. Liability Insurance
1. The procuring entity shall have the responsibility to procure and maintain
adequate liability insurance for and in behalf of its BAC members or BAC
Support Staff.
2. The liability insurance policy shall cover only those liabilities asserted
against the public official and incurred by him in his capacity as such BAC
members or BAC Support Staff as the case may be.
3. The insurer shall pay for the loss arising from the claim or suit made
against the BAC members or BAC Support Staff during the policy period
wherein they serve in such capacity.
4. For purposes of this issuance, the term “loss” shall include judgments,
expenses for settlement or compromise, as well as all reasonable fees and
other expenses incurred by such persons in connection with any
administrative, civil, or criminal action, suit or proceeding to which they may
be or have been made a party by reason of the lawful performance of their
official functions and duties in such capacity.
4.2. Liability Insurance
5. Provided further, that, such BAC members or BAC Support Staff
shall not be adjudged in such action or proceeding to be guilty of
gross negligence, misconduct, or grave abuse of discretion or
guilty of any other complaint or charges.
6. In the event of settlement or compromise, indemnification shall
be confined only to matters covered by the settlement, and to
which the procuring entity had been advised by counsel that the
person to be indemnified have not committed gross negligence,
misconduct, or grave abuse of discretion in the performance of
their duties and functions.
7. The procurement of liability insurance shall be subject to the
setting of schedule of premium by the GPPB.
4.3. Medical Assistance
1. Medical assistance shall be provided to BAC members and
BAC Support Staff for Injuries/disabilities incurred in the
lawful performance of their official functions and duties.
2. The claimant(s) shall be entitled to indemnification for any
injury or disability resulting from the performance of their
official functions as defined by law and without any
contributory negligence on their part. Provided further, that
they exercised due diligence to prevent harm or
injury to themselves.
3. The claimant or his/her relatives must notify the head of the
procuring entity within seven (7) calendar days from the
occurrence of the injury or disability.
4.3. Medical Assistance
4. The medical assistance herein provided shall consist of
indemnification for medicines, laboratory and hospitalization
expenses, provided that the amount claimed shall not exceed
the actual amount incurred, substantiated by receipts and
other supporting documents.
5. Indemnification shall only be made upon presentation of
the proof of payment in connection with the injury or disability
suffered.
6. The medical assistance granted herein shall be granted to
the claimant as a matter of right and subject to the conditions
mandated by law.
PROCEDURE FOR GRANTING LEGAL
ASSISTANCE AND INDEMNIFICATION
OF BAC MEMBERS